For the Quarter Ending September 2024
North America
In Q3 2024, EPDM Rubber (medium diene) prices in North America saw a notable rise, influenced by several key factors. Tight supply conditions for critical feedstocks like Ethylene and Propylene, combined with rising production costs, played a major role in driving up prices. Strong demand from key sectors such as automotive, electronics, and construction also contributed to the upward trend.
The USA experienced the most significant price increases, with a 2.44% rise from the previous quarter, reflecting a steady growth trajectory. However, prices were still down by 28.85% compared to the same period last year. Meanwhile, weakened economic performance in the European market led to reduced demand for EPDM Rubber, particularly in downstream industries.
Despite this, the US pricing environment remained largely positive, demonstrating resilience and adaptability to shifting market conditions. By the end of Q3 2024, the price of EPDM Rubber medium diene ENB (4.1-5.5) FOB Texas reached USD 2785/MT, highlighting the continued price increases and a cautiously optimistic outlook for the market moving forward.
APAC
Q3 2024 has been marked by stability in EPDM Rubber pricing across the APAC region, with consistent market conditions prevailing throughout the quarter. Several factors have contributed to this steady pricing environment, including well-balanced supply levels, stable demand from key sectors, and efficient inventory management by suppliers. Major manufacturers have employed consistent pricing strategies, maintaining a healthy balance between supply and demand dynamics in the market. Japan has seen the most notable price movements in the region during this quarter. Despite facing some challenges in downstream sectors, the country has successfully maintained stable EPDM Rubber prices. The overall market trend in Japan reflects minimal price fluctuations and an alignment with broader market stability. The country recorded a slight 2.96% decrease compared to the same quarter last year, alongside a modest 2.18% increase from the previous quarter in 2024, indicating a relatively steady pricing landscape. As of the quarter's end, the price for EPDM Rubber Medium Diene (ENB 4.7-5.4) FOB Tokyo was USD 2360/MT, reinforcing the region's overall stable market sentiment.
Europe
In Q3 2024, Europe’s EPDM Rubber market displayed steady price stability, holding firm amid shifting economic factors. This equilibrium was largely achieved through strategic inventory controls, consistent supply levels, and sustained demand from core sectors like automotive, electrical and construction. Suppliers managed production and inventory levels carefully, balancing against variable Ethylene and Propylene feedstock costs to limit potential price fluctuations. In Germany, where the most significant regional price changes occurred, overall trends reflected a controlled pricing environment. Suppliers effectively managed seasonal demand variations, aligning price adjustments with both domestic and international market influences. While prices dipped 13.10% year-over-year, this marks a broader trend toward market recalibration. A 1.76% quarter-over-quarter increase points to strengthened supply chain efficiencies and sector-driven demand growth. Price levels remained consistent across the quarter, with EPDM Rubber Medium Diene (ENB 4.1-5.5) ending at USD 2,940/MT FD Wiesbaden, underscoring a stable outlook in Q3 2024. Strategic supplier actions and reliable demand have fostered a stable, positive pricing environment.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been marked by a generally downward trend in EPDM Rubber prices in the North American region, despite the increasing sentiments surrounding production costs and demand fluctuations. This quarter has seen several significant factors influencing the market prices, predominantly driven by the automotive and construction sectors' robust performance. However, the continuous destocking activities by market participants have exerted downward pressure, balancing out any potential price hikes.
Additionally, rising feedstock costs, particularly for Ethylene and Propylene, have created a complex pricing environment, with suppliers strategically managing their inventories to navigate fluctuating supply chain dynamics. Focusing on the USA, which has experienced the most substantial price changes, the market has primarily observed a bearish trend. Seasonality played a crucial role, with demand surges from the automobile and construction sectors counterbalanced by high inventory levels and cautious supplier activities.
The price of EPDM Rubber in the USA has seen a -6.8% change compared to the last quarter, reflecting a notable reduction in pricing. The quarter closed with the price of EPDM Rubber Commercial Grade FOB Texas at USD 2025/MT, highlighting the overall sustained downward trend. Despite the positive growth in downstream sectors, the pricing environment for EPDM Rubber in the USA has faced challenges, resulting in a predominantly negative sentiment for Q2 2024.
APAC
In Q2 2024, the APAC EPDM Rubber market experienced a consistent upward price trajectory reflecting a robust market environment driven by several factors. The primary catalysts behind this price surge include a marked increase in demand from key industrial sectors such as automotive and construction, coupled with significant supply chain disruptions. Heightened freight charges and logistical challenges, exacerbated by geopolitical tensions and container shortages, further propelled the pricing dynamics. An uptrend in propylene prices, despite a decline in ethylene costs, maintained elevated feedstock prices, contributing to the overall rise in EPDM Rubber rates. Focusing on Japan, the EPDM Rubber market illustrated pronounced volatility, marking the maximum price changes within the region. Seasonally, the second quarter typically sees amplified industrial activity, which bolstered demand, particularly from the automotive sector. The overall trend revealed a potent correlation between supply constraints and increased market appetite, leading to a 9.8% price increase from the previous quarter. The quarter culminated with EPDM Rubber Medium Diene (ENB 4.7-5.4) prices stabilizing at USD 2330/MT FOB Tokyo.
Europe
The second quarter of 2024 has seen a nuanced shift in the EPDM Rubber market in Europe, trending towards increasing prices despite various influencing factors. The market has been characterized by moderate demand from the automotive sector and underperformance in the construction industry. Supply chain efficiencies have improved, reducing disruptions and fostering a positive pricing environment. However, rising costs, including labor, raw materials, and logistical expenses, have exerted upward pressure on prices. The EPDM Rubber market has responded with proactive inventory management by suppliers, who are accumulating stocks in anticipation of sustained demand and potential future supply constraints. The EPDM Rubber price marked the increase of 3.9% from quarter-over-quarter underscores a recovering sentiment. The overall trend in Germany indicates a delicate balance between demand-supply dynamics and cost management. The quarter culminated with EPDM Rubber Medium Diene (ENB 4.1-5.5) priced at USD 2879/MT FD Wiesbaden, marking a stable yet upward trajectory. The pricing environment has been predominantly positive, driven by strategic supplier actions and resilient demand from key sectors.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American EPDM Rubber market has experienced marginal declining trend. Market participants closely monitored the supply and demand situation, expecting prices to remain steady as the market went through a destocking phase. Reports from major industrial sources indicated that inventories and market demands were sufficient to meet requirements.
The automotive sector displayed resilience, evidenced by the sale of 3,797,420 units, signaling 2.83% decline from previous quarter but increasing month on month growth. However, it is worth noting that there were multiple plant shutdowns during this period. The Dow Chemical Company (DowDuPont), Unit-1 in Plaquemine, Louisiana, Exxon Mobil Corporation in Louisiana, and Lion Elastomers LLC (Chemtura) in Geismar, Louisiana experienced forced shutdowns due to freezing weather conditions. The Dow Chemical Company (DowDuPont), Unit-1 was shut from January 16th to January 25th, 2024, Exxon Mobil Corporation was shut from January 13th to January 20th, 2024, and Lion Elastomers LLC (Chemtura) was shut from January 16th to January 25th, 2024. These shutdowns were caused by natural calamities and had no significant impact on the market.
Despite these shutdowns, the EPDM Rubber market in the USA did not show any rise in the price. Compared to the previous quarter, there was an 20.52% decrease in price. Overall, the current price of EPDM Rubber (ENB 4.1-5.5) FOB Texas in the USA for the first quarter of 2024 is USD 2760/MT. Despite the plant shutdowns, the market remained stable, and prices experienced a decrease during this period.
APAC
During the first quarter of 2024, the EPDM Rubber market in the APAC region faced challenging conditions. Prices continued to decline following the first quarter of 2024, primarily due to a decrease in demand from the construction sectors while Automobile sector outperformed. This resulted in a bearish market sentiment, as suppliers struggled to find buyers for their inventories. The decline in prices can be attributed to suppliers dumping their available stocks, which led to a lack of fresh bidding for inventory accumulation. In Japan specifically, the price of EPDM rubber witnessed a significant decline of 5.05% compared to the previous quarter. The Japanese market experienced a moderate to low demand, mainly due to a decrease in economic performance affecting the downstream Automobile and the Construction sector market. During this period, the APAC region experienced multiple plant shutdowns. One such shutdown occurred in South Korea at Lotte Versalis Elastomers in Yeosu, due to a force majeure event - a flood. Fortunately, this shutdown had no impact on the EPDM Rubber market. Another shutdown took place in Japan at ENEOS Corporation in Kashima, also due to a force majeure event - an earthquake. The duration of this shutdown was not confirmed at the time of reporting. The latest price for EPDM Rubber Medium Diene (ENB 4.7-5.4) FOB Tokyo in Japan stood at USD 2218/MT.
Europe
During the first quarter of 2024, the EPDM Rubber market in Europe experienced stability in France. The supply levels remained moderate to high, while the demand from sectors such as construction and industrial segments was moderate to low. However, the automobile sector showed strong growth, driving the demand for EPDM Rubber. The French economy faced challenges due to the global economic slowdown and geopolitical risks, resulting in reduced demand from the construction industry. Despite these factors, the price supported by the surge in the feedstock price like Ethylene and Propylene, moderate demand, and reduced inventories. However, amidst these factors, the downstream automobile market in the biggest Automobile player Germany in Europe, demonstrates resilience with a total of 694,825 units sold, albeit marking a 1.66% decline from the previous quarter's 706,543 units in Q3 2023. Despite challenges, this positive performance underscores the steady demand for automobiles in the region with increase in the sales over month-on-month basis. Additionally, the ongoing destocking practices among suppliers helped align inventory levels with current demand dynamics, contributing to price stability. As the quarter comes to an end, the current price of EPDM Rubber Medium Diene (ENB 4.1-5.5) Ex-works Leers in France is USD 2936/MT marking an increment of 8.82% from Q4 2023.
For the Quarter Ending December 2023
North America
EPDM Rubber pricing in North America witnessed a significant decline in the current quarter of 2023 (Q4). The major reasons for this decline were the global oversupply of EPDM rubber, the slowdown in the automotive and construction industries in the European Market, which resulted in lowering the demand for the EPDM Rubber.
The United States experienced the most significant impact on the EPDM Rubber pricing during this quarter, with a decline of 8.75% compared to the previous quarter. Additionally, there was a 7% decline in the prices of EPDM Rubber during the 4th quarter compared to the 3rd Quarter, which can be attributed to the destocking of inventories by manufacturers and traders.
During Dec 2023, USA market witnessed moderate to low demand from the overseas downstream market in the automotive industry and fewer market purchases this quarter. The price of EPDM Rubber Commercial Grade FOB Texas in the USA for Q4 2023 is USD 2154/MT during Dec 2023.
APAC
EPDM Rubber prices in the APAC region during the Q4 of 2023 witnessed a decline of 4.84% in Japan. The market witnessed a bearish trend, with moderate to high supply and demand conditions. The overall enquiry for EPDM Rubber remained strong in Japan, where the market value of EPDM Rubber Medium Diene (ENB 4.7-5.4) held steady, despite the continuous drop in crude oil prices impacting global Naphtha costs and subsequently causing a considerable decrease in Ethylene prices.
The quarter saw a decrease in prices from the major exporting countries such as Japan and South Korea due to decreased industrial activities. The impact of a decrease in crude oil prices and imbalance in the demand and supply chain across various suppliers contributed to the price decline.
The EPDM Rubber market witnessed a declining trend due to a decrease in the price of the major feedstock, primarily Ethylene, while Propylene prices remained steady. The current quarter's ending price of EPDM Rubber Medium Diene (ENB 4.7-5.4) FOB Tokyo in Japan is USD 2336/MT.
Europe
The fourth quarter of 2023 saw a bearish market situation for EPDM Rubber in Europe, with moderate supply and demand. The overall enquiry for EPDM Rubber remained high in the market, although the downstream automotive industry in some European countries showed a contrasting trend.
The ongoing decline in crude oil prices and reduced demands from major importing nations played a significant role in the overall price decrease, despite the moderate sales in the automobile industry in fewer European countries like Netherland and France. In Germany the major Automobile market, the reduced sales in the automobile sector due to a subsidy cut by the German government and a downturn in the construction sector contributed to the price decline.
The overall demand for EPDM Rubber remained sluggish in the Dutch market during the quarter, with unfavourable market situation and moderate supply and demand. As the destocking of inventories started in December, manufacturers and traders focused on clearing out their stocks, even if they had to squeeze their margins. The price of EPDM Rubber High Diene (ENB 7-11) FOB Rotterdam was USD 2986/MT at the end of the quarter. The price trend of EPDM Rubber in the Netherlands showed a 13.14% decrease from the previous quarter.
